Allica Bank has raised $155m in a Series D funding round to accelerate lending to established SMEs, deepen its technology investment and begin international expansion.
The digital bank, which focuses on businesses with typically 5 to 250 employees, said the round – comprising mostly common equity alongside a portion of additional Tier 1 capital – values the business at close to $1.2bn.
Richard Davies (main picture, inset), chief executive of Allica Bank, said: “We’re building the category defining digital bank for established SMBs, and are excited to be taking our proprietary platform into new markets.
“This Series D investment is a major vote of confidence in Allica’s strategy and performance.”
RAPID GROWTH
The capital injection follows a period of rapid growth, with Allica’s balance sheet scaling to nearly £4bn of SME lending and more than £5bn of deposits over the past five years. The bank now serves more than 30,000 established SMEs across the UK, around 5% of its target market, and is aiming for 10% penetration by 2028.
The lender said the new funding will support continued lending growth and further investment in its proprietary technology stack, including the use of AI to enhance both front- and back-office processes and improve credit decisioning.
The round was backed by Ventura Capital, GLG, Sona AM and existing investors TCV and Blue Owl.
FINTECH POWERHOUSE
Lucy Rigby, City Minister and Economic Secretary to the Treasury, said: “The UK is a fintech powerhouse and this Government is doubling down on measures that will enable the sector to grow.
“This government is helping to unlock investment into firms like Allica, supporting better finance for innovative British businesses, and showcasing UK financial services on the global stage.”
WORLD CLASS
Mo El Husseiny, managing partner of Ventura Capital, said: “Allica is a world class business that is executing exceptionally well in a large, underserved market. Ventura is proud to be a major investor in Allica’s Series D and we are raring to support this exceptional team’s next stage of growth into international markets.”
John Doran, general partner at TCV, added: “Allica’s proprietary full-stack technology is world-class – and provides a truly differentiated edge in SMB banking.”
And Michael Kalfayan, general partner at TCV, said: “Allica solves what customers have long been asking for – speed, reliability and trust – reflected in its outstanding performance in recent years.
“Looking ahead, we see Allica as a frontrunner in applying AI across front and back office processes in financial services, and we are excited to support the team’s ambition to fundamentally improve SMB banking across Europe.”
